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Huayou bought Arcadia Lithium Mine from Australian miner, Prospect Resources Ltd back in 2022 for US$378 million.
CHINESE battery manufacturer, Huayou Cobalt (Huayou) is placing significant emphasis on its Arcadia Lithium Mine, as it progresses with a lithium sulfate project expected to lower production costs.
Huayou bought Arcadia Lithium Mine from Australian miner, Prospect Resources Ltd back in 2022 for US$378 million.
Huayou, a Chinese producer of cobalt, nickel, and lithium materials used predominantly in lithium-ion batteries, has since identified Arcadia as a strategic project.
This is because the Chinese firm revealed that the completion of its planned lithium sulfate initiative would enhance cost efficiency in the production process after mining the mineral.
Arcadia Lithium Mine is home to one of the world’s largest hard rock lithium resources, establishing it as a key player in the global lithium market. In 2023, the facility produced approximately 500 000 metric tonnes of lithium concentrate, bolstering Zimbabwe’s position within the lithium supply chain.
“In Zimbabwe, the Arcadia lithium ore project was in good order, achieving lithium concentrate shipment of about 400 000 tonnes, a year-on-year increase of 41%, and a significant increase in production capacity,” Huayou said, in its newly released 2024 Annual report.
“The construction of the 50 000 tonnes lithium sulfate project began in January 2024, and after the completion of the project, the integration of mining and metallurgy from lithium concentrate to lithium salt will be achieved, greatly reducing the production cost of lithium salt.”
According to Huayou, the Arcadia lithium mine is a pivotal project during China’s ‘14th Five-Year Plan’ period and represents a crucial step in establishing an integrated industrial chain for new energy lithium-ion battery materials.
Hence, the project is vital for ensuring Huayou’s future lithium resource supply.
“In Africa, the company has developed a cobalt-copper resource development system that integrates mining, beneficiation, and cobalt-copper smelting in the Democratic Republic of the Congo’s major mineral areas and has invested in the Arcadia lithium mine project in Zimbabwe to address its lithium resource shortfall,” Huayou said.
The main lithium varieties produced from the Arcadia Lithium Mine are spodumene and petalite with the Chinese firm estimating a resource 58,29 million tonnes, with annual output of 4,5 million tonnes.
Huayou revealed that the mine’s remaining exploitable years is 9,09 years and had a book value of equivalent to US$3,4 million at the end of the reporting period.
“In Africa, the lithium sulfate project in Zimbabwe will be implemented as planned,” the firm added.
Lithium is a key raw material in the production of electric vehicle batteries.
“The new energy vehicle industry has a highly globalised characteristic,” Huayou said.
“The company, based on characteristics of the industry, arranged its business operation internationally and invested in mineral resource development, smelting and processing, battery material manufacturing and other projects in Indonesia, D. R. Congo, Zimbabwe, South Korea, Hungary and other places.”
It said that its products were launched in global markets such as in China, Japan, South Korea, Europe, and America.
“Due to uncertainty factors such as industrial policies, politics, economy, regulation and lawin the countries where the investment projects are located and the end markets are located, if the Company is unable to effectively respond to and resolve the said risks in the future, it may lead to the risk of litigation and development not meeting expectations,” Huayou said.
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